Five criteria of good segments

For segmentation to be effective and useful to a company, segments must meet the following criteria:

• Measurable – the size, growth rate and purchase power must be measurable

• Accessible – the segment can be effectively reached and served

• Sustainable – the segments are large and profitable enough to bring profit

• Differentiable – the segments are sufficiently different from each other

• Actionable – internal capabilities are sufficient to meet each segment’s needs

An easy way to remember the 5 criteria would be to use the acronym “MASDA” – from the first letters of each word.